fbpx 52187-001: Affordable Mortgage Finance | Asian Development Bank

Georgia: Affordable Mortgage Finance

Nonsovereign (Private) Project | 52187-001 Status: Approved

The transaction will support affordable mortgage and home renovation financing for urban and rural dwellers households with lower and medium incomes. The proposed ADB assistance comprises a senior loan of up to the lari equivalent of $100 million to TBC with a tenor of up to 6 years.

Project Details

Project Officer
Hartel, Rainer Private Sector Operations Department Request for information
Country
  • Georgia
Sector
  • Finance
 
Project Name Affordable Mortgage Finance
Project Number 52187-001
Borrower/Company TBC Bank JSC
Country Georgia
Location Nation-wide
Type or Modality of Assistance
3760 Loan Ordinary capital resources USD 100.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Hartel, Rainer
Project Sponsor(s)
Description The transaction will support affordable mortgage and home renovation financing for urban and rural dwellers households with lower and medium incomes. The proposed ADB assistance comprises a senior loan of up to the lari equivalent of $100 million to TBC with a tenor of up to 6 years.
Objectives and Scope TBC will provide mortgage financing in urban areas benefiting mainly low- to medium-income families.
Linkage to Country/Regional Strategy

The transaction supports the following key operational priorities of ADB's Strategy 2030: (i) addressing remaining poverty and reducing inequalities; (ii) promoting rural development; and (iii) improving progress in gender equality. The transaction is consistent with government efforts to promote the well-being of its citizens and ADBs country partnership strategy, 2014 - 2018 for Georgia.

Consistency with sector strategy and relevant ADB operations. ADB plays a tangible role in deepening the finance sector in Georgia. Since 2007, ADB provided nonsovereign loans amounting to $255 million and TA to banks. As well as through its Trade Finance Program. ADBs nonsovereign efforts align with a sovereign program approved in 2016 and a new program anticipated for 2019 to develop the capital markets, including the issuance of lari bonds and covered bond legislation, among other banking policy reforms.

Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects TBC's mortgages to be funded by the ADB loan have minimal or no adverse environmental impacts.
Involuntary Resettlement TBC's mortgages to be funded by the ADB loan are unlikely to entail impacts on involuntary resettlement.
Indigenous Peoples TBC's mortgages to be funded by the ADB loan are unlikely to entail impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation Potential housing and mortgage finance borrowers participate through market research activity undertaken by TBC in determining the most appropriate lending product design to its target customers. TBC has extensive national networks of branches and fintech service channels through which to engage and empower beneficiaries.
Timetable for assistance design, processing and implementation
Concept Clearance 31 Jul 2018
Credit Committee Meeting 29 Oct 2018
Approval 05 Dec 2018
Last PDS Update 11 Jan 2019

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.